Any transaction that changes the balance in a ledger account does so by posting a journal entry. Transactions that post to journal accounts are called posting transactions. For example, a bank check is a posting transaction. NetSuite automatically generates journal entries when you record posting transactions.
If you must adjust the balances in your ledger accounts without entering a posting transaction, then you can make a manual journal entry.
For example, journal entries can be used to do the following:
- To edit your opening balances if you find the amounts were in error.
- To enter an adjustment such as for depreciation, that is not possible as a standard transaction.
- To transfer amounts from one ledger account to another.
Remember the principles of double-entry bookkeeping when you make journal entries to keep your books in balance. You can enter as many lines as needed in the journal entry as long as the total amount of debit lines equals the total amount of credit lines.
To create a Journal Entry:
1. Navigate to the Transactions drop down.
2. Click Financial.
3. Select Make Journal Entries.
4. In the Date field, accept today’s date or enter a new date for the journal entry.
5. Select your Journal Type.
6. Select the Posting Period in which to post this transaction.
7. Enter the detailed information for each journal line. Not all these
- Enter a Debit or Credit.
- Select a relevant Tax Code.
- Enter a Memo if required.
- Enter a Name of a person to associate this entry with if required.
- Enter a Department, Class if required.
- Select a relevant Tax Account.
8. When you finish entering line items, verify that the Out of Balance by Debit and Credit fields are blank. If either field contains an amount, your line items are out of balance. Your line items must balance to save the journal.
9. Click Save.